Wednesday, July 1, 2015

U.S. Debt Headed Toward Greek Levels

Jayson Russel writes:
A quarter-century ago, Greek debt levels were roughly 75 percent of Greece's economy — about equal to what the U.S. has now. As of 2014, Greek debt levels are about 177 percent of national GDP. Now, the country is considering defaulting on its loans and uncertainty is gripping the economy.

In 25 years, U.S. debt levels are projected to reach 156 percent of the economy, which Greece had in 2012. That projection comes from the Congressional Budget Office's alternative scenario, which is more realistic than its standard fiscal projection about which spending programs Congress will extend into the future.
Of course, the one difference is that the US, in the form of the Federal Reserve, has a money printing press. And, when debt reaches crisis levels, the Fed will likely use their money printing powers to buy large amounts of the debt, resulting in massive price inflation.


1 comment:

  1. So you're saying we could go to the grocery store and buy some kicking cans?